CHAPTER 214 HOUSE BILL No. 2063 An  Act relating to property taxation; amending K.S.A. 79-2801 and K.S.A. 2000 Supp. 79- 201a and repealing the existing sections. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 2000 Supp. 79-201a is hereby amended to read as
follows: 79-201a. The following described property, to the extent herein
specified, shall be exempt from all property or ad valorem taxes levied
under the laws of the state of Kansas:

      First. All property belonging exclusively to the United States, except
property which congress has expressly declared to be subject to state and
local taxation.

      Second. All property used exclusively by the state or any municipality
or political subdivision of the state. All property owned, being acquired
pursuant to a lease-purchase agreement or operated by the state or any
municipality or political subdivision of the state, including property which
is vacant or lying dormant, which is used or is to be used for any govern-
mental or proprietary function and for which bonds may be issued or
taxes levied to finance the same, shall be considered to be used exclusively
by the state, municipality or political subdivision for the purposes of this
section. The lease by a municipality or political subdivision of the state
of any real property owned or being acquired pursuant to a lease-purchase
agreement for the purpose of providing office space necessary for the
performance of medical services by a person licensed to practice medicine
and surgery or osteopathic medicine by the board of healing arts pursuant
to K.S.A. 65-2801 et seq., and amendments thereto, dentistry services by
a person licensed by the Kansas dental board pursuant to K.S.A. 65-1401
et seq., and amendments thereto, optometry services by a person licensed
by the board of examiners in optometry pursuant to K.S.A. 65-1501 et
seq., and amendments thereto, or K.S.A. 74-1501 et seq., and amend-
ments thereto, podiatry services by a person licensed by the board of
healing arts pursuant to K.S.A. 65-2001 et seq., and amendments thereto,
or the practice of psychology by a person licensed by the behavioral sci-
ences regulatory board pursuant to K.S.A. 74-5301 et seq., and amend-
ments thereto, shall be construed to be a governmental function, and
such property actually and regularly used for such purpose shall be
deemed to be used exclusively for the purposes of this paragraph. The
lease by a municipality or political subdivision of the state of any real
property, or portion thereof, owned or being acquired pursuant to a lease-
purchase agreement to any entity for the exclusive use by it for an exempt
purpose, including the purpose of displaying or exhibiting personal prop-
erty by a museum or historical society, if no portion of the lease payments
include compensation for return on the investment in such leased prop-
erty shall be deemed to be used exclusively for the purposes of this par-
agraph. All property leased, other than property being acquired pursuant
to a lease-purchase agreement, to the state or any municipality or political
subdivision of the state by any private entity shall not be considered to
be used exclusively by the state or any municipality or political subdivision
of the state for the purposes of this section except that the provisions of
this sentence shall not apply to any such property subject to lease on the
effective date of this act until the term of such lease expires but property
taxes levied upon any such property prior to tax year 1989, shall not be
abated or refunded. Any property constructed or purchased with the pro-
ceeds of industrial revenue bonds issued prior to July 1, 1963, as author-
ized by K.S.A. 12-1740 to 12-1749, or purchased with proceeds of im-
provement district bonds issued prior to July 1, 1963, as authorized by
K.S.A. 19-2776, or with proceeds of bonds issued prior to July 1, 1963,
as authorized by K.S.A. 19-3815a and 19-3815b, or any property im-
proved, purchased, constructed, reconstructed or repaired with the pro-
ceeds of revenue bonds issued prior to July 1, 1963, as authorized by
K.S.A. 13-1238 to 13-1245, inclusive, or any property improved, reim-
proved, reconstructed or repaired with the proceeds of revenue bonds
issued after July 1, 1963, under the authority of K.S.A. 13-1238 to 13-
1245, inclusive, which had previously been improved, reconstructed or
repaired with the proceeds of revenue bonds issued under such act on or
before July 1, 1963, shall be exempt from taxation for so long as any of
the revenue bonds issued to finance such construction, reconstruction,
improvement, repair or purchase shall be outstanding and unpaid. Any
property constructed or purchased with the proceeds of any revenue
bonds authorized by K.S.A. 13-1238 to 13-1245, inclusive, 19-2776, 19-
3815a and 19-3815b, and amendments thereto, issued on or after July 1,
1963, shall be exempt from taxation only for a period of 10 calendar years
after the calendar year in which the bonds were issued. Any property, all
or any portion of which is constructed or purchased with the proceeds of
revenue bonds authorized by K.S.A. 12-1740 to 12-1749, inclusive, and
amendments thereto, issued on or after July 1, 1963 and prior to July 1,
1981, shall be exempt from taxation only for a period of 10 calendar years
after the calendar year in which the bonds were issued. Except as here-
inafter provided, any property constructed or purchased wholly with the
proceeds of revenue bonds issued on or after July 1, 1981, under the
authority of K.S.A. 12-1740 to 12-1749, inclusive, and amendments
thereto, shall be exempt from taxation only for a period of 10 calendar
years after the calendar year in which the bonds were issued. Except as
hereinafter provided, any property constructed or purchased in part with
the proceeds of revenue bonds issued on or after July 1, 1981, under the
authority of K.S.A. 12-1740 to 12-1749, inclusive, and amendments
thereto, shall be exempt from taxation to the extent of the value of that
portion of the property financed by the revenue bonds and only for a
period of 10 calendar years after the calendar year in which the bonds
were issued. The exemption of that portion of the property constructed
or purchased with the proceeds of revenue bonds shall terminate upon
the failure to pay all taxes levied on that portion of the property which is
not exempt and the entire property shall be subject to sale in the manner
prescribed by K.S.A. 79-2301 et seq., and amendments thereto. Property
constructed or purchased in whole or in part with the proceeds of revenue
bonds issued on or after January 1, 1995, under the authority of K.S.A.
12-1740 to 12-1749, inclusive, and amendments thereto, and used in any
retail enterprise identified under the standard industrial classification
codes, major groups 52 through 59, inclusive, except facilities used exclu-
sively to house the headquarters or back office operations of such retail
enterprises identified thereunder, shall not be exempt from taxation. For
the purposes of the preceding provision ``standard industrial classification
code'' means a standard industrial classification code published in the
Standard Industrial Classification manual, 1987, as prepared by the sta-
tistical policy division of the office of management and budget of the
office of the president of the United States. ``Headquarters or back office
operations'' means a facility from which the enterprise is provided direc-
tion, management, administrative services, or distribution or warehousing
functions in support of transactions made by the enterprise. Property
purchased, constructed, reconstructed, equipped, maintained or repaired
with the proceeds of industrial revenue bonds issued under the authority
of K.S.A. 12-1740 et seq., and amendments thereto, which is located in a
redevelopment project area established under the authority of K.S.A. 12-
1770 et seq. shall not be exempt from taxation. Property purchased, ac-
quired, constructed, reconstructed, improved, equipped, furnished, re-
paired, enlarged or remodeled with all or any part of the proceeds of
revenue bonds issued under authority of K.S.A. 12-1740 to 12-1749a,
inclusive, and amendments thereto for any poultry confinement facility
on agricultural land which is owned, acquired, obtained or leased by a
corporation, as such terms are defined by K.S.A. 17-5903 and amend-
ments thereto, shall not be exempt from such taxation. Property pur-
chased, acquired, constructed, reconstructed, improved, equipped, fur-
nished, repaired, enlarged or remodeled with all or any part of the
proceeds of revenue bonds issued under the authority of K.S.A. 12-1740
to 12-1749a, inclusive, and amendments thereto, for a rabbit confinement
facility on agricultural land which is owned, acquired, obtained or leased
by a corporation, as such terms are defined by K.S.A. 17-5903 and amend-
ments thereto, shall not be exempt from such taxation.

      Third. All works, machinery and fixtures used exclusively by any rural
water district or township water district for conveying or production of
potable water in such rural water district or township water district, and
all works, machinery and fixtures used exclusively by any entity which
performed the functions of a rural water district on and after January 1,
1990, and the works, machinery and equipment of which were exempted
hereunder on March 13, 1995.

      Fourth. All fire engines and other implements used for the extinguish-
ment of fires, with the buildings used exclusively for the safekeeping
thereof, and for the meeting of fire companies, whether belonging to any
rural fire district, township fire district, town, city or village, or to any fire
company organized therein or therefor.

      Fifth. All property, real and personal, owned by county fair associations
organized and operating under the provisions of K.S.A. 2-125 et seq. and
amendments thereto.

      Sixth. Property acquired and held by any municipality under the mu-
nicipal housing law (K.S.A. 17-2337 et seq.) and amendments thereto,
except that such exemption shall not apply to any portion of the project
used by a nondwelling facility for profit making enterprise.

      Seventh. All property of a municipality, acquired or held under and for
the purposes of the urban renewal law (K.S.A. 17-4742 et seq.) and
amendments thereto except that such tax exemption shall terminate when
the municipality sells, leases or otherwise disposes of such property in an
urban renewal area to a purchaser or lessee which is not a public body
entitled to tax exemption with respect to such property.

      Eighth. All property acquired and held by the Kansas armory board for
armory purposes under the provisions of K.S.A. 48-317, and amendments
thereto.

      Ninth. All property acquired and used by the Kansas turnpike authority
under the authority of K.S.A. 68-2001 et seq., and amendments thereto,
K.S.A. 68-2030 et seq., and amendments thereto, K.S.A. 68-2051 et seq.,
and amendments thereto, and K.S.A. 68-2070 et seq., and amendments
thereto.

      Tenth. All property acquired and used for state park purposes by the
Kansas department of wildlife and parks.

      Eleventh. The state office building constructed under authority of
K.S.A. 75-3607 et seq., and amendments thereto, and the site upon which
such building is located.

      Twelfth. All buildings erected under the authority of K.S.A. 76-6a01 et
seq., and amendments thereto, and all other student union buildings and
student dormitories erected upon the campus of any institution men-
tioned in K.S.A. 76-6a01, and amendments thereto, by any other non-
profit corporation.

      Thirteenth. All buildings, as the same is defined in subsection (c) of
K.S.A. 76-6a13, and amendments thereto, which are erected, constructed
or acquired under the authority of K.S.A. 76-6a13 et seq., and amend-
ments thereto, and building sites acquired therefor.

      Fourteenth. All that portion of the waterworks plant and system of the
city of Kansas City, Missouri, now or hereafter located within the territory
of the state of Kansas pursuant to the compact and agreement adopted
by chapter 304 of the 1921 Session Laws of the state of Kansas. [See
K.S.A. 79-205.]

      Fifteenth. All property, real and personal, owned by a groundwater
management district organized and operating pursuant to K.S.A. 82a-
1020, and amendments thereto.

      Sixteenth. All property, real and personal, owned by the joint water
district organized and operating pursuant to K.S.A. 80-1616 et seq., and
amendments thereto.

      Seventeenth. All property, including interests less than fee ownership,
acquired for the state of Kansas by the secretary of transportation or a
predecessor in interest which is used in the administration, construction,
maintenance or operation of the state system of highways, regardless of
how or when acquired.

      Eighteenth. Any building used primarily as an industrial training center
for academic or vocational education programs designed for and operated
under contract with private industry, and located upon a site owned,
leased or being acquired by or for an area vocational school, an area
vocational-technical school, a technical college, or a community college,
as defined by K.S.A. 72-4412, and amendments thereto, and the site upon
which any such building is located.

      Nineteenth. For all taxable years commencing after December 31,
1997, all buildings of an area vocational school, an area vocational-tech-
nical school, a technical college or a community college, as defined by
K.S.A. 72-4412, and amendments thereto, which are owned and operated
by any such school or college as a student union or dormitory, and the
site upon which any such building is located.

      Twentieth. For all taxable years commencing after December 31,
1997, all personal property which is contained within a dormitory that is
exempt from property taxation and which is necessary for the accom-
modation of the students residing therein.

      Except as otherwise specifically provided, the provisions of this section
shall apply to all taxable years commencing after December 31, 1998
2000.

      Sec.  2. K.S.A. 79-2801 is hereby amended to read as follows: 79-
2801. (a) Except as provided by K.S.A. 79-2811, and amendments thereto,
whenever real estate has been or shall be sold and bid in by the county
at any delinquent tax sale and remains unredeemed on September 1 of
the second year after the sale, or any extension thereof as provided by
subsection (b) of K.S.A. 79-2401a, and amendments thereto, or whenever
real estate described by subsection (a)(2) of K.S.A. 79-2401a, and amend-
ments thereto, has been or shall be sold and bid in by the county at any
delinquent tax sale and remains unredeemed on September 1 of the first
year after the sale, the board of county commissioners shall order the
county attorney or county counselor and it shall be the duty of the county
attorney or county counselor to institute an action in the district court, in
the name of the board of county commissioners, against the owners or
supposed owners of the real estate and all persons having or claiming to
have any interest therein or thereto, by filing a petition with the clerk of
the court. The board of county commissioners may provide for special
legal and other assistance necessary to secure the timely performance of
duties required by this act. Whenever the real estate involved is a mineral
interest in land which has been severed from the fee, the bringing of the
action for the foreclosure of the mineral interest shall be within the dis-
cretion of the board of county commissioners. Whenever the aggregate
assessed valuation of the real estate subject to sale is less than $300,000,
or the aggregate amount of delinquent taxes, including special assess-
ments, is less than $10,000, the bringing of the action shall be within the
discretion of the board of county commissioners. The petition shall con-
tain a description of each tract, lot or piece of real estate including, if in
a city of the first or second class, the street number or location. The
petition shall state, as far as practicable, the amount of taxes, charges,
interest and penalties chargeable to each tract, lot or piece of real estate,
the name of the owner, supposed owner and party having or claiming to
have any interest therein or thereto, and giving the year the real estate
was sold for delinquent taxes under the provisions of K.S.A. 79-2302, and
amendments thereto. The petition shall request that the court determine
the amount of taxes, charges, interest and penalties chargeable to each
particular tract, lot or piece of real estate, the name of the owner or party
having any interest therein and. The petition also shall request that the
court adjudge and decree the amount due to be a first and prior lien upon
the real estate and that the same be sold at public sale for the satisfaction
of the lien, costs, charges and expenses of the proceedings and sale and
other necessary relief. The petition shall be filed in duplicate and a copy
delivered by the clerk to the county treasurer, who thereafter shall accept
no payments of taxes upon the real estate included in the petition except
as provided by K.S.A. 79-2801 to 79-2810, inclusive, and amendments
thereto.

      A summons shall be issued and personally served or publication made
as provided in other cases under the code of civil procedure. If service is
made by publication, the notice, in addition to the requirements pre-
scribed by the code of civil procedure, shall contain a description of the
real estate. Any member of the board of county commissioners, county
attorney or county counselor who fails to perform the duties required by
this section shall forfeit the office held by the officer. Any person may
secure enforcement of the provisions of this act through mandamus. Such
proceeding shall be initiated by filing a petition in a court of competent
jurisdiction.

      (b) The governing body of any city may provide for the rendering of
legal and other assistance to the county attorney or county counselor to
secure the expeditious judicial foreclosure of real estate on which there
is unredeemed delinquent tax liens, including delinquent special assess-
ments. The provision of such services by the city shall not relieve any
county officer of the requirement to perform the duties required by this
act. The actual and necessary costs incurred by a city in providing such
assistance shall be considered as costs incident to the sale of the real estate
and the city may be reimbursed therefor from the proceeds of the sale
in an amount apportioned pursuant to K.S.A. 79-2805, and amendments
thereto.

      (c) If the board of county commissioners fails to initiate proceedings
for a judicial tax foreclosure sale on property located within the corporate
limits of a city and if the taxes on such property have remained delinquent
for at least three years after such property first becomes eligible for sale
by the county at a judicial tax foreclosure sale pursuant to K.S.A. 79-2801
et seq., and amendments thereto, the governing body of the city in which
such property is located may initiate a judicial tax foreclosure sale on such
property. The governing body of such city shall have the same powers
and duties of the board of county commissioners under K.S.A. 79-2801 et
seq., and amendments thereto, which are necessary to effectuate the sale
of such property. The city attorney of such city shall have the same powers
and duties of the county attorney or county counselor under K.S.A. 79-
2801 et seq., and amendments thereto, relating to the judicial tax foreclo-
sure sale of such property. All other county officers shall perform the
duties prescribed by law relating to the sale of such property in the same
manner as if such sale had been initiated by the board of county com-
missioners.

      New Sec.  3. Notwithstanding the provisions of any law to the con-
trary, the tax imposed upon a motor vehicle pursuant to K.S.A. 79-5101
et seq., and amendments thereto, which is delinquent and more than one
year past due, and any penalty and interest resulting from such delin-
quency, shall be canceled and forgiven if such vehicle is donated to a
nonprofit charitable organization which is exempt from payment of fed-
eral income tax. In the event any such vehicle is purchased from any such
organization by the donor, or on behalf of the donor, of such vehicle,
liability for all such tax, interest and penalty shall vest in such purchaser,
and shall be collected in the manner prescribed by K.S.A. 79-5116, and
amendments thereto.

 Sec.  4. K.S.A. 79-2801 and K.S.A. 2000 Supp. 79-201a are hereby
repealed.

 Sec.  5. This act shall take effect and be in force from and after its
publication in the statute book.

Approved May 22, 2001.
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